The Impact of Origin and Safety Attributes on Vietnamese Consumers' Preferences for Organic Oranges: A Choice Experiment Approach
Keywords:
Choice Experiment, Consumer Preferences, Generalized Multinomail Logit, Organic Oranges, Willingness to PayAbstract
The objective of the research is to examine the effects of product attributes on consumers’ willingness to pay (WTP) for organic oranges in the Mekong Delta and estimate the consumers’ WTP for each attribute. The study used survey data from 413 households in the Mekong Delta from March 2022 to July 2022. The choice experiment method (CE) was employed to analyze consumers’ willingness to pay. The results show that the factors that positively influence consumers’ level of WTP for organic oranges include organic material, the label of organic certification, product traceability, eco-label, and quality grade. In addition, the price has a negative influence on consumers’ WTP. Besides, consumers prefer imported fruits over domestically grown fruits. By leveraging the discrete choice theory and the stimulus-organism-response (SOR) model, the study developed a theoretical model about the effects of product attributes on consumers’ WTP for organic oranges in a transition economy. Additionally, our study also affirms that the SOR model serves as a useful structure to describe the process that leads to the final purchase decision. In the case of organic fruit buying behavior, the research focuses on how different stimuli, such as price and quality attributes, affect the activation and cognitive processes in the "black box" of consumers and ultimately lead to a particular product choice.
References
Adams, A., K. Agbenorhevi, J., Alemawor, F., E. Lutterodt, H., & O. Sampson, G. (2018). Assessment of the consumers’ awareness and marketing prospects of organic fruits and vegetables in Techiman, Ghana. Journal of Food Security, 6(2), 55–66.
Anh, P. T. C., Huong, L. M., & Oanh, V. T. K. (2020). Generation Z willingness to pay for sustainable apparel: The influence of labelling for origin and eco-friendly material. Journal of International Economics and Management, 20(3), 42-59.
Akgüngör, S., Miran, B., & Abay, C. (2010). Consumer willingness to pay for organic food in urban Turkey. Journal of International Food and Agribusiness Marketing, 22(3), 299–313.
Balderjahn, I. (2003). Erfassung der preisbereitschaft [Measuring willingness to pay]. In H. Diller & A. Heremann (Eds.), Handbuch Preispolitik: Strategien – Planung – Organisation – Umsetzung [Handbook of Pricing Policy: Strategies – Planning – Organization – Implementation] (pp. 387-404). Wiesbaden: Gabler Verlag.
Bhattarai, K. (2019). Consumers’ willingness to pay for organic vegetables: Empirical evidence from Nepal. Economics and Sociology, 12(3), 132–146.
Bui, H. (2018). Effects of country–of-origin on customer’s buying intention: A case study of the Vietnamese market. (Master Thesis, School of Marketing and Communication, University of VAASA, Finland). Retrieved from https://osuva.uwasa.fi/handle/10024/9464
Cai, Z., Gold, M., & Brannan, R. (2019). An exploratory analysis of US consumer preferences for North American pawpaw. Agroforestry Systems, 93(5), 1673–1685.
Communist Party of Vietnam. (2022). Developing the market for consuming organic agricultural products. Retrieved from https://dangcongsan.vn/kinh-te/phat-trien-thi-truong-tieu-thu-san-pham-nong-nghiep-huu-co-625282.html
Dang, V. H., & Doan, T. V. (2024). Consumer preferences for country of origin of foreign fruit: does consumer animosity matter? Cogent Business & Management, 11(1).
Davcik, N. S., & Sharma, P. (2015). Impact of product differentiation, marketing investments and brand equity on pricing strategies: A brand level investigation. European Journal of Marketing, 49(5/6), 760-781.
Denver, S., Jensen, J. D., Olsen, S. B., & Christensen, T. (2019). Consumer preferences for ‘localness’ and organic food production. Journal of Food Products Marketing, 25(6), 668–689.
Dinis, I., Simoes, O., & Moreira, J. (2011). Using sensory experiments to determine consumers’ willingness to pay for traditional apple varieties. Spanish Journal of Agricultural Research, 9(2), 351-362. https://doi.org/10.5424/sjar/20110902-133-10
Dixie, G. (2005). Horticultural Marketing. Rome, Italy: Food and Agriculture Organization of the United Nations.
Eichhorn, T., & Meixner, O. (2020). Factors influencing the willingness to pay for aquaponic products in a developed food market: A structural equation modeling approach. Sustainability (Switzerland), 12(8).
Fiebig, D. G., Keane, M. P., Louviere, J., & Wasi, N. (2010). The generalized multinomial logit model: Accounting for scale and coefficient heterogeneity. Marketing science, 29(3), 393-421.
General Statistics Office. (2021a). The results of the 2020 population living standards survey [Press release]. Retrieved from https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2021/07/thong-cao-bao-chi-ve-ket-qua-khao-sat-muc-song-dan-cu-nam-2020/
General Statistics Office. (2021b). Total retail sales of goods and consumer service revenue at current prices by locality. Retrieved from https://www.gso.gov.vn/ px-web-2/?pxid=V0802&theme=Th%C6%B0%C6%A1ng%20m% E1%BA%A1i%2C%20gi%C3%A1%20c%E1%BA%A3
Gerini, F., Alfnes, F., & Schjøll, A. (2016). Organic- and animal welfare-labelled eggs: Competing for the same consumers?. Journal of Agricultural Economics, 67(2), 471–490.
Greene, W. H., & Hensher, D. A. (2010). Does scale heterogeneity across individuals matter? An empirical assessment of alternative logit models. Transportation, 37, 413-428.
Gu, Y., Hole, A. R., & Knox, S. (2013). Fitting the generalized multinomial logit model in Stata. The Stata Journal, 13(2), 382-397.
Gujarati, D. N. (2011). Econometrics by example. New York: Palgrave Macmillan.
Hai, N. M., Moritaka, M., & Fukuda, S. (2013). Willingness to pay for organic vegetables in vietnam: An empirical analysis in Hanoi capital. Journal of the Faculty of Agriculture, Kyushu University, 58(2), 449–458.
Hempel, C., & Hamm, U. (2016). Local and/or organic: A study on consumer preferences for organic food and food from different origins. International Journal of Consumer Studies, 40(6), 732–741.
Hensher, D. A., & Greene, W. H. (2003). The mixed logit model: The state of practice. Transportation, 30, 133-176.
Hensher, D. A., Rose, J., M., & Greene, W., H. (2005). Applied Choice Analysis. Cambridge, United Kingdom: Cambridge University Press.
Hole, A. R. (2007). Fitting mixed logit models by using maximum simulated likelihood. Stata Journal, 7(3), 388-401.
Hole, A. R. (2013). Mixed logit modeling in Stata-An overview. Paper presented at United Kingdom Stata Users' Group Meetings 2013 (No. 23). Retrieved from http://repec.org/usug2013/hole.uk13.pdf
Hussein, M., & Fraser, I. (2018). Hedonic analysis of consumers’ valuation of country of origin of meat in the United Kingdom. Journal of Agricultural Economics, 69(1), 182-198.
Icek, A. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179-211.
Jin, J., Wang, Z., & Ran, S. (2006). Comparison of contingent valuation and choice experiment in solid waste management programs in Macao. Ecological Economics, 57(3), 430-441.
Jin, S., Li, H., & Li, Y. (2017). Preferences of Chinese consumers for the attributes of fresh produce portfolios in an e-commerce environment. British Food Journal, 119(4), 817-829.
Khoi, B. H., & Van Tuan, N. (2022, January). Intention to buy organic food to keep healthy: Evidence from Vietnam. In N. D. Tho, H. T. Nguyen, & T. D. Ngo (eds). International Econometric Conference of Vietnam (pp. 651-665). Cham: Springer International Publishing.
Kokthi, E., Canco, I., & Topulli, E. (2021). Whose salad is organic? An attribute segmentation perspective-evidence from Albania. Economia Agro-Alimentare, 23(2), 1–26.
Kotler, P., Armstrong, G., Harris, L. C., & He, H. (2020). Principles of Marketing(18th ed.). London: Pearson.
Krystallis, A., & Chryssohoidis, G. (2005). Consumers’ willingness to pay for organic food: Factors that affect it and variation per organic product type. British Food Journal, 107(5), 320–343.
Krystallis, A., Fotopoulos, C., & Zotos, Y. (2006). Organic consumers’ profile and their willingness to pay (WTP) for selected organic food products in Greece. Journal of International Consumer Marketing, 19(1), 81–106.
Kvakkestad, V., Berglann, H., Refsgaard, K., & Flaten, O. (2018). Citizen and consumer evaluation of organic food and farming in Norway. Organic Agriculture, 8(2), 87-103.
Lancaster, K. J. (1966). A new approach to consumer theory. Journal of Political Economy, 74(2), 132-157.
Le, M. H., & Nguyen, P. M. (2022). Integrating the theory of planned behavior and the norm activation model to investigate organic food purchase intention: Evidence from Vietnam. Sustainability, 14(2).
Linh, L. N., & Minh, D. T. (2022). Factors affecting intention to buy organic food after the Covid-19 pandemic: Case of Vietnamese customers in higher education. Hunan Daxue Xuebao/Journal of Hunan University Natural Sciences, 49(9), 85–99.
Loureiro, M. L., & Umberger, W. J. (2007). A choice experiment model for beef: What US consumer responses tell us about relative preferences for food safety, country-of-origin labeling and traceability. Food Policy, 32(4), 496–514.
Louviere, J. J. (2000). Stated choice methods: Analysis and applications. Cambridge, United Kingdom: Cambridge University Press.
Luu, D. T. (2019). Willingness to pay and actual purchase decision for organic agriculture products in Vietnam. Economic Journal of Emerging Markets, 11(2), 123-134.
Mai, N. T., Phuong, T. T. L., Dat, T. T., & Truong, D. D. (2023). Determinants of organic food purchasing intention: an empirical study of local consumers in Da Nang city, Central Vietnam. Frontiers in Sustainable Food Systems, 7.
Maples, M., Interis, M. G., Morgan, K. L., & Harri, A. (2018). Southeastern consumers’ willingness to pay for environmental production attributes of fresh tomatoes. Journal of Agricultural and Applied Economics, 50(1), 27-47.
Mazzanti, M. (2003). Discrete choice models and valuation experiments. Journal of Economic Studies, 30(5-6), 584-604.
Mazzocchi, C., Ruggeri, G., & Corsi, S. (2019). Consumers’ preferences for biodiversity in vineyards: A choice experiment on wine. Wine Economics and Policy, 8(2), 155-164.
McFadden, D. (2001). Economic choices. American Economic Review, 91(3), 351-378.
Meas, T., Hu, W., Batte, M. T., Woods, T. A., & Ernst, S. (2015). Substitutes or complements? Consumer preference for local and organic food attributes. American Journal of Agricultural Economics, 97(4), 1044-1071.
Nandi, R., Bokelmann, W., Gowdru, N. V., & Dias, G. (2017). Factors influencing consumers’ willingness to pay for organic fruits and vegetables: Empirical evidence from a consumer survey in India. Journal of Food Products Marketing, 23(4), 430–451.
Netemeyer, R. G., Krishnan, B., Pullig, C., Wang, G., Yagci, M., Dean, D., Ricks, J., & Wirth, F. (2004). Developing and validating measures of facets of customer-based brand equity. Journal of Business Research, 57(2), 209-224.
Nguyen, D. T., & Truong, D. C. (2021). The impact of psychological and environmental factors on consumers' purchase intention toward organic food: Evidence from
Vietnam. The Journal of Asian Finance, Economics and Business, 8(1), 915-925.
Nguyen, H. V., Nguyen, N., Nguyen, B. K., & Greenland, S. (2021). Sustainable food consumption: Investigating organic meat purchase intention by Vietnamese consumers. Sustainability, 13(2).
Nguyen, T. T., Haider, W., Solgaard, H. S., Ravn-Jonsen, L., & Roth, E. (2015). Consumer willingness to pay for quality attributes of fresh seafood: A labeled latent class model. Food Quality and Preference, 41, 225-236.
Nguyen, T. T. M., Phan, T. H., Nguyen, H. L., Dang, T. K. T., & Nguyen, N. D. (2019). Antecedents of purchase intention toward organic food in an Asian emerging market: A study of urban Vietnamese consumers. Sustainability, 11(17).
Nhat, B. H., & Dut, V. V. (2023a). A bibliographic analysis of publications on willingness to pay for organic food. VNU University of Economics and Business, 3(6), 113-113.
Nhat, H. B., & Dut, V. V. (2023b). Urban households' willingness to pay for organic products: The case of organic oranges in Long Xuyen city. VNU University of Economics and Business, 3(1), 102-111.
Owusu, V., & Anifori, M. O. (2013). Consumer willingness to pay a premium for organic fruit and vegetable in Ghana. International Food and Agribusiness Management Review, 16(1), 67-86.
Palma, M. A., Ribera, L. A., & Knutson, R. D. (2016). The era of the functional consumer. Journal of Food Products Marketing, 22(5), 555-570.
Parkvithee, N., & Miranda, M., J., (2012). The interaction effect of country-of-origin, brand equity and purchase involvement on consumer purchase intentions of clothing labels. Asia Pacific Journal of Marketing and Logistics, 24, 7-22.
Pham, H. C. (2020). Antecedents of organic food products intention and behaviors: Evidence from Vietnam. The Journal of Asian Finance, Economics and Business, 7(11), 429-437.
Rousseau, S., & Vranken, L. (2013). Green market expansion by reducing information asymmetries: Evidence for labeled organic food products. Food Policy, 40.
Ruud, P. A. (1996). Approximation and simulation of the multinomial probit model: An analysis of covariance matrix estimation (Working paper). Department of Economics, University of California, Berkeley, 1–17. Retrieved from https://citeseerx.ist.psu.edu/document?repid=rep1&type=pdf&doi=be7c4d2170c60452497c4a21789b518167a0a8d2
Skreli, E., Imami, D., Chan, C., Canavari, M., Zhllima, E., & Pire, E. (2017). Assessing consumer preferences and willingness to pay for organic tomatoes in Albania: A conjoint choice experiment study. Spanish Journal of Agricultural Research, 15(3).
Smith, M., Lal, P., Oluoch, S., Vedwan, N., & Smith, A. (2021). Valuation of sustainable attributes of hard apple cider: A best-worst choice approach. Journal of Cleaner Production, 318(August 2020).
Sweeney, J. C., & Soutar, G. N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of Retailing, 77(2).
Thurstone, L. (1927). A law of comparative judgement. Psychological Review, 4, 273-286.
Thuy, L. T., Diu, T. T. P., Hoan, N. D., Ninh, V. V., & Nga, N. T. T. (2021). Factors affecting intention to purchase organic agriculture products among Vietnamese. AgBioForum, 23(2), 1-12.
Thuy, L. T., Thong, L. V., & Giao, H. K. (2023). Some features of the current status of organic agriculture in Vietnam - Potential and challenges. Retrieved from
Vietnam Ruminant Husbandry Association https://vinaruha.vn/mot-so-net-ve-hien-trang-nong-nghiep-huu-co-cua-viet-nam-tiem-nang-va-thach-thuc/
Tran, D., Broeckhoven, I., Hung, Y., Diem My, N. H., De Steur, H., & Verbeke, W. (2022). Willingness to pay for food labelling schemes in Vietnam: A choice experiment on water spinach. Foods, 11(5).
Train, K. E. (1998). Recreation demand models with taste differences over people. Land Economics, 74(2), 230-239. https://doi.org/10.2307/3147053
Train, K. E. (2009). Discrete choice methods with simulation. Cambridge, United Kingdom: Cambridge University Press.
Nguyen, M., Phan, T., Nguyen, L., Dang, T., & Nguyen, N. (2019). Antecedents of Purchase Intention toward Organic Food in an Asian Emerging Market: A Study of Urban Vietnamese Consumers. Sustainability, 11, 4773.
United States Department of Agriculture. (2022). About organic labeling. Retrieved from https://www.ams.usda.gov/rules-regulations/organic/labeling
Van Nguyen, T. (2023). Perception, intention, and buying behavior of Vietnamese consumers of organic food products. Journal of Hunan University Natural Sciences, 50(8).
Wang, L., Wang, J., & Huo, X. (2019). Consumer’s willingness to pay a premium for organic fruits in China: A double-hurdle analysis. International Journal of Environmental Research and Public Health, 16(1).
Wang, Q., Sun, J., & Parsons, R. (2010). Consumer preferences and willingness to pay for locally grown organic apples: Evidence from a conjoint study. HortScience, 45(3), 376-381.
Wright, S. J., Vass, C. M., Sim, G., Burton, M., Fiebig, D. G., & Payne, K. (2018). Accounting for scale heterogeneity in healthcare-related discrete choice experiments when comparing stated preferences: A systematic review. The Patient-Patient-Centered Outcomes Research, 11, 475-488. https://doi.org/10.1007/s40271-018-0304-x
Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3). https://doi.org/10.2307/1251446
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31-46.
Downloads
Published
How to Cite
Issue
Section
Categories
License
Copyright (c) 2025 Thailand and The World Economy
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
